Ruto, Kenya: Sugarcane farmers to receive payments every 7 days
Kenya’s sugar sector is undergoing a major transformation. President William Ruto announced that sugarcane farmers supplying formerly state-owned mills will now be paid weekly by factories, not the government. A bonus payout is planned for December 2025. This follows the leasing of four public sugar mills to private firms for 30 years, aiming to revive and modernize the struggling industry.
President William Ruto has announced a new payment plan for sugarcane farmers in the formerly state-owned mills.
Speaking during the Third National Executive Retreat at the KCB Leadership Centre in Kajiado County on Thursday, June 19, 2025, Ruto stated that farmers will be paid every seven days.
Highlighting the reforms in the sugar sector, Ruto stated that sugarcane farmers will cease to be paid by the government, and workers will be paid on time.
“Farmers will now never be paid by the government but by the factories that they supply their sugarcane to. We have agreed with all private sector players that farmers will be paid not in six months or one year, as has been the case before, but rather every seven days. Workers will be paid on time, and every year, sugarcane farmers will receive a bonus,” he stated.
“We have already actualised that in one of the first factories that we started with; Mumias and all the other formerly government-owned mills will follow suit,” he added.
Furthermore, he announced that sugarcane farmers will receive bonuses by December 2025 across all sugar factories.
“By December this year, we intend to pay a bonus to farmers across the sugar mills that the government initially owned because of the reforms in that sector,” he added.
This comes after the government completed the leasing process of four public sugar factories to revive the once-thriving sugar sector in the country.
Leasing of sugar factories
In a statement in May 2025, the Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, said that following a broad-based consultation, four private millers have been awarded a 30-year lease for the operation of Nzoia, Chemilil, Sony, and Muhoroni Sugar Companies.
“The procurement of the four firms followed broad-based engagement with stakeholders across the sugar sector dating back to the year 2015, when Parliament approved the process,” he said.
Further, he said leasing of Nzoia Sugar Company has been awarded to West Kenya Sugar Company, while that of Chemelil Sugar Company has been awarded to Kibos Sugar & Allied Industries Limited.
He said leasing of Sony Sugar Company has been awarded to Busia Sugar Industry Ltd. and that leasing of Muhoroni Sugar Company has been awarded to West Valley Sugar Company.
“The government competitively procured the four firms through the Ministry of Agriculture and Livestock Development, the Kenya Sugar Board, and other key government players,” he said.
He observed that the decision to lease out the four factories was arrived at after lengthy consultations with key stakeholders across the sugar sector, including farmers, sugar factory workers, unions, Members of Parliament, and governors, and approvals by the Cabinet.
The CS said the decision was informed by the need to ensure a return on investment for taxpayers, who have, over the years, bailed out the ailing sugar sector.
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Source : People Daily
